Don Savage
Headquarters, Washington, D.C.
November 8, 1991
(Phone: 202/453-8400)
4:00 p.m. EST
RELEASE: 91-186
NASA SUSPENDS CONTRACTOR FOLLOWING FEDERAL INDICTMENT
NASA's Assistant Administrator for Procurement Darleen A.
Druyun today suspended Collins Commercial Avionics, Cedar Rapids,
Iowa, a division of Rockwell International, and one employee and
one former employee of Collins from further government contracts.
The suspension follows a 15-count indictment, returned in the U.
S. District Court in Cedar Rapids charging Rockwell International
and the two individuals with defrauding NASA for several years on
production and repair of Space Shuttle equipment.
The indictment charges the two employees of Collins and other
unnamed individuals with conspiracy, mail and wire fraud and false
claims. The letter of suspension states that they altered other
employees' time cards by adding hours not actually worked, and
billed NASA for work which was not performed under NASA contracts.
The fraudlently inflated vouchers were then sent to NASA for
payment.
Collins and the two individuals named in the indictment will
be excluded from doing business with the government pending
further legal proceedings and investigations.
NASA also put Rockwell International on notice that it is
continuing its investigation into this matter. Druyun said that
if adequate evidence becomes known which indicates corporate
involvement or negligent disregard on the part of Rockwell
International in these activities, additional appropriate action
will be taken.
If convicted on all counts, Rockwell could face a maximum
penalty of $7.5 million in fines, and the two individuals could
each face 30 years in prison and a $1.5 million fine.
The matter was investigated by agents from NASA's Office of
Inspector General and the Defense Criminal Investigative Service
and by auditors from the Defense Contract Audit Agency.
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